Gujarat High Court Faults CESTAT For 'Difficult To Decipher' Remand Order In Customs Classification Dispute

The Gujarat High Court has recently set aside a CESTAT order remanding a customs classification dispute, questioning how the tribunal directed the adjudicating authority to re-examine CBEC circulars despite an earlier Gujarat High Court judgment requiring the Union of India to undertake that exercise."We fail to understand how the Tribunal, in the facts of the present case, adopted the very same directions and remanded the matter to the Adjudicating Authority to re-look into the said Circulars,...

Gujarat High Court Dismisses LANXESS Belgium's Writ Against Anti-Dumping Duty, Holds CESTAT Proper Forum

The Gujarat High Court on 7 July held that disputes concerning the methodology used by the Designated Authority to determine dumping and injury margins in anti-dumping proceedings must be raised before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a writ petition unless exceptional circumstances exist. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed the writ petition filed by Belgian exporter LANXESS Belgium N.V. challenging the...

Madras High Court Quashes ₹12.58 Cr Demand Against Pellagic Food, Upholds Advance Ruling Principles

The Madras High Court on 9 July quashed the Customs order passed against Pellagic Food Ingredients Pvt. Ltd. that raised a demand of Rs. 12.58 crore as differential customs duty, along with interest, confiscation of goods, redemption fine and penalties. A Single Judge Bench of Justice Hemant Chandangoudar held that Customs authorities should ordinarily follow the legal principles laid down in an Advance Ruling in similar cases, even though such rulings bind only the applicant who obtained them,...

FSSAI Alone Can Certify Imported Food Safety; Customs Can Sample For Classification: Calcutta High Court

The Calcutta High Court has held that only an authorised officer of the Food Safety and Standards Authority of India (FSSAI) is competent to draw samples of imported food products to determine whether they are safe and fit for human consumption. It clarified that Customs authorities may independently draw samples only for customs purposes such as classification, valuation, duty liability and investigation of possible misdeclaration. Justice Smita Das De held, "In concise, the FSSAI Authorised...

Delhi High Court Upholds Confiscation of 2.7 kg Undeclared Gold, Says Experienced Traveller Knew Customs Rules

The Delhi High Court has upheld the confiscation of over 2.7 kilograms of gold brought into India from Dubai without declaration, observing that the petitioner's experience as an international traveller showed that he was fully aware of his obligation to declare dutiable goodsA Division Bench of Justices Anil Kshetarpal and Shail Jain refused to interfere with the concurrent findings of the adjudicating authority, the Commissioner of Customs (Appeals) and the revisional authority, which had held...

Customs Appeals Cannot Face Maintainability Challenge At Pre-Admission Stage: Calcutta High Court

The Calcutta High Court on 10 July held that parties in customs appeals cannot challenge the maintainability of such appeals at the pre-admission stage, and must raise objections relating to jurisdiction or maintainability only after the Court determines whether the appeal involves a substantial question of law. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar rejected the respondents' request for a preliminary hearing on maintainability while hearing a batch of appeals filed by...

Madras High Court Holds Unreasonable Delay Bars Duty Drawback Recovery, Quashes ₹38.77 Lakh Demand

The Madras High Court on 7 July held that customs authorities cannot recover duty drawback benefits after an unreasonable and unexplained delay, even when the relevant rules do not prescribe a specific limitation period for such recovery. Justice Hemant Chandangoudar quashed the recovery proceedings initiated against A.Kiyasdeen, an exporter for recovery of Rs. 38.77 lakh in duty drawback and a penalty of Rs. 1 lakh, holding that the proceedings initiated several years after the drawback was...

Authorised Courier Can Appeal Licence Revocation After Chief Commissioner Representation: Delhi High Court

The Delhi High Court has held that an Authorised Courier whose licence has been revoked under the Courier Imports and Exports (Clearance) Regulations, 2010 can maintain a statutory appeal under Section 129A of the Customs Act, 1962, even after availing the remedy of representation before the Chief Commissioner under the Regulations.A Division Bench of Justices Anil Kshetrapal and Shail Jain set aside a CESTAT order that had dismissed the courier's appeal as not maintainable on the ground that...

Madras HC Holds Civil Dispute Over Wharfage Refund Cannot Be Tried As Criminal Offence, Quashes CBI Case

The Madras High Court on 8 June quashed a CBI charge sheet, holding that authorities cannot convert a civil dispute relating to refund of wharfage charges into criminal proceedings alleging cheating, forgery, or corruption. A Single-Judge Bench of Justice G.K. Ilanthiraiyan allowed the petition and quashed the criminal proceedings against all accused. He held: “...it was found that there was no excess wharfage charges amount and as such requested the importer to return the same, on the said...

Registration Of Customs Appeal Cannot Be Refused For Non-Payment Of Pre-Deposit: Allahabad High Court

The Allahabad High Court has held that an appellate authority cannot refuse to register an appeal merely because the appellant has not made the mandatory pre-deposit under Section 129E of the Customs Act, holding that the statutory requirement applies only at the stage of "entertaining" the appeal and not at the stage of its filing or registration. A Division Bench of Justices Saumitra Dayal Singh and Swarupama Chaturvedi disposed of a writ petition filed by Runway Impex, directing the...

Corrigendum Cannot Expand Show Cause Notice After Hearing Concludes: Gujarat High Court

On 22 June, the Gujarat High Court held that Customs authorities cannot introduce fresh allegations or evidence through a corrigendum after adjudication proceedings have concluded and the matter has been reserved for final orders. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a writ petition filed by Vidres India Ceramics Pvt. Ltd. and directed the authorities to pass final orders within six weeks.They emphasised that the department could not improve its...

Customs Cannot Apply Later Interim Order Retrospectively To Demand BIS Certification: Gujarat High Court

The Gujarat High Court on 15 June held that customs authorities cannot withhold imported consignments by retrospectively applying a subsequent interim order and insisting on Bureau of Indian Standards (BIS) certification for goods imported during a period when such certification was not mandatory. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a petition filed by Hilotex International Pvt. Ltd., holding that customs authorities acted arbitrarily in placing imported...